Home || Community Services || Neighborhood Redevelopment || Nsp Background

Neighborhood Stabilization Program - Background

The City of Aurora amended its 2008 Annual Action Plan and Consolidated Plan for the purpose of fulfilling the application requirements to receive Neighborhood Stabilization Program (NSP) funds from the U.S. Department of Housing and Urban Development (HUD) authorized under Title III of the Housing and Economic Recovery Act of 2008 (HERA). The purpose of these funds is to assist local governments in addressing the effects of abandoned and foreclosed properties. Eligible uses of the funds include:

• Establishment of financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties
• Purchase and rehabilitation of abandoned and foreclosed homes and residential properties
• Establishment of land banks for homes that have been foreclosed upon
• Demolition of blighted structures, and
• Redevelopment of demolished or vacant properties

HERA provides that these funds shall generally be treated as Community Development Block Grant (CDBG) funds. Through a successful application process, the City of Aurora received an allocation of $3,083,568 for the purpose of acquiring and redeveloping foreclosed properties to reduce the incidents of abandonment and blight within the city. The City of Aurora is targeting the areas of greatest need while benefitting low, moderate, and middle-income households (LMMI). Individuals and families with incomes not exceeding 120% of area median income qualify for these funds. At least 25% of the funds used for the purchase and redevelopment of abandoned or foreclosed upon homes must benefit households earning 50% or less of area median income.

The identified areas of greatest need for the purpose of this Substantial Amendment are based upon HUD data. The City of Aurora defines these areas in the following manner:

• Areas with the greatest percentage of home foreclosures
• Areas with the highest percentage of homes financed by subprime mortgage related loans, and
• Areas identified as likely to face a significant rise in the rate of home foreclosures